Latest news with #ARKInnovationETF
Yahoo
2 days ago
- Business
- Yahoo
Cathie Wood Makes Another Tesla Move With Robotaxi Date Set; Nvidia Says The Start Of 'Next Trillion-Dollar Industry'
Cathie Wood and Ark Invest trimmed Tesla stock holdings for a second consecutive stock market session on Wednesday as TSLA overtook an aggressive entry. In addition, Nvidia Chief Executive Jensen Huang heaped praise on Elon Musk and Tesla late Wednesday. Wood's ARK Innovation ETF on Wednesday sold 15,187 shares of Tesla for an estimated $5.42 million, according to Wood's ETF daily trade disclosures.
Yahoo
3 days ago
- Business
- Yahoo
Tesla Stock Shows Strength, Clears Early Entry, And Cathie Wood Made This Move
Cathie Wood and Ark Invest trimmed Tesla stock holdings Tuesday as TSLA rose above a new aggressive entry. Wood's ARK Innovation ETF on Tuesday sold 27,377 shares of Tesla for an estimated $9.93 million, according to Wood's ETF daily trade disclosures. As of Wednesday, Tesla stock was the top holding in the ARKK ETF, with a 13.31% weight and a market value of $772.7 million.
Yahoo
23-05-2025
- Business
- Yahoo
1 Top Vanguard ETF to Buy Right Now
The Vanguard Value Index Fund ETF, by targeting value stocks, can provide investors with long-term stability. When the market crashed earlier this year, the ETF's losses were more modest. Amid market uncertainty, more investors could shift to value stocks. 10 stocks we like better than Vanguard Index Funds - Vanguard Value ETF › The S&P 500 is in positive territory for the year as of Monday's close -- up over 1%. But it has been a volatile year, and that's putting it lightly. In April, with the advent of reciprocal tariffs, the index plummeted and was down more than 15% since the start of the year. For investors, the big question is how the market performs from here on out. Will it continue to rally, or will tariffs chip away at earnings and put pressure on stocks yet again? Trying to predict what will happen is incredibly difficult, which is why timing the market is risky and usually not worth your time, as you can miss out on gains by doing so. But if you are worried about the market or just want a safe place to put your money, either for the short term or the long term, then there's one exchange-traded fund (ETF) you should consider right now: the Vanguard Value Index Fund ETF (NYSEMKT: VTV). The Vanguard Value Index Fund ETF invests in value stocks, which can be an ideal option right now. A big risk for investors these days is getting caught up with stocks that have gone up sharply in value. The ETF averages a price-to-earnings multiple of just over 18, which is lower than the current S&P 500 average of 24. At elevated valuations, the risk for a correction is high. Consider that while the S&P 500 was down as much as 15% this year, the ARK Innovation ETF, which focuses on growth stocks, fared even worse; at its low point, its year-to-date losses were nearly 29%. Growth stocks may have more upside when times are good, but when times aren't so good, they can quickly nosedive. For investors who don't want that kind of volatility, value stocks can be much safer options. By comparison, the Vanguard Value fund's lowest point this year was a year-to-date loss of 9%. While it won't let you avoid a downturn in the market, it can help shield your portfolio from deeper losses in the worst of times. An important feature of the ETF is that just 6% of its portfolio is in tech stocks. The bulk of its position is in less volatile and more resilient sectors, including financials (23%), healthcare (16%), and industrials (15%). Berkshire Hathaway, JPMorgan Chase, and ExxonMobil are the top three stocks in the fund, making up a little over 9% of the Vanguard's entire portfolio. That's good news for investors because it means limited exposure to any one stock. There are 331 stocks in the ETF, which allows the fund to spread out its position. The S&P 500 is highly dependent on the most valuable stocks in the market. Over the past decade, the Vanguard ETF has, however, underperformed the broader index, based on total returns (which include dividends). While the above chart may look concerning, it's not surprising given how fast high-growth stocks have been soaring for much of the past five years. While 2022 was a bad year, the market has done well overall. In each of the past two years, the S&P 500 generated gains in excess of 20%, which isn't common, its long-run average being around 10%. When growth stocks are hot, the difference in performance between the S&P 500 and this value-focused Vanguard fund will be steep. But in the above chart you can see that the gap wasn't nearly as significant before 2020 as it has become. Nowadays, with valuations back at elevated levels, there could be some rotation into more value-oriented stocks, especially as investors grow concerned about where the market is headed. And that could make the Vanguard Value Index Fund ETF a market beater in the years ahead. Before you buy stock in Vanguard Index Funds - Vanguard Value ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Value ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $807,814!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, and Vanguard Index Funds-Vanguard Value ETF. The Motley Fool has a disclosure policy. 1 Top Vanguard ETF to Buy Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Should You Own This Cathie Wood Favorite? A Look at Palantir Technologies Stock.
Palantir is one of Ark Invest's largest holdings. The company is incredibly effective at applying its advanced artificial intelligence tech to unique organizations. The stock is incredibly pricey. 10 stocks we like better than Palantir Technologies › Cathie Wood doesn't shy away from taking risks. It's part of what has garnered her a loyal following of investors who like her bold style. Her flagship fund's 152.8% return in 2020 probably helped, too. Of course, risk-taking often comes with downsides. The same fund, the ARK Innovation ETF, is still down more than 60% since its 2021 peak, while the S&P 500 is up nearly 45%. Still, many continue to look to Wood as a luminary of innovation investing. Wood recently took to social media platform X to tell her followers that she believes the CEO of one of her largest holdings when he says his company will become the largest pure-play enterprise artificial intelligence (AI) software company in the world. That company, Palantir Technologies (NASDAQ: PLTR), also happens to be one of the hottest stocks on Wall Street. So, should you own this favorite stock of Cathie Wood? The company, which helps organizations leverage AI to improve decision-making in real time, is executing at a very high level. There's no doubt about that. Clients as diverse as Ferrari and the U.S. Army count on its advanced technologies. This utility has driven consistent revenue and earnings growth. The chart below shows how strong its growth has been on the top line (revenue) -- and especially on its bottom line (earnings). The magic is in both the uber-advanced technology itself and the company's ability to adapt it in a unique manner to each of its clients. This isn't a one-size-fits-all approach, and it's part of why its AI solutions can take on such complex problems. The company sends what it calls its "forward deployed software engineers" to work with its clients to create a bespoke solution that starts with a deep understanding of the real problems. Note the military flavor of Palantir's terminology here. If "forward deployed" wasn't clear enough, they're also called "deltas," apparently in reference to U.S. Army elite special operatives. The company deliberately fosters a sense that they are "in the trenches," at war with the issues its clients face -- and to be sure, that's often literally true as Palantir counts as clients five branches of the U.S. armed forces. This relationship, aside from delivering incredibly effective and responsive results for the clients, makes Palantir's services sticky -- that is, there is a high cost to switching to a competitor. From the incredible level to which its systems are integrated with its clients' systems, to the psychological bonds forged having its deltas "forward deployed," the decision to sever ties with Palantir is likely not one made lightly. This is nothing new for investors who have followed the company at all, but the fact is that the stock is incredibly expensive. The price-to-earnings ratio (P/E) currently sits just shy of 560. Its price-to-sales ratio (P/E) is 102. These are astronomical. This table below compares these current figures to Nvidia's and Cisco's at their peaks. Company P/S P/E Palantir (2025) 102 557 Nvidia (2023) 46 247 Cisco (2000) 39 236 You might be thinking that Palantir's growth justifies these inflated numbers, at least for a time. Perhaps, but consider that its sales growth right now is only about 66% of Cisco's at its peak, and its earnings growth is slower than Nvidia's current growth, which in turn is much less than it was during its peak. There is just no way to square this circle. Palantir's valuation is wildly out of proportion, and that makes it a ticking time bomb. There is no doubt that it is operating at an extremely high level, but this sort of valuation requires perfection, something no company can deliver. I would say that unless the stock falls significantly -- let's say, 50% -- I would not consider owning it, regardless of what Cathie Wood thinks of it. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy. Should You Own This Cathie Wood Favorite? A Look at Palantir Technologies Stock. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
Is This Top Holding at Cathie Wood's Ark Invest Worth Adding to Your Portfolio?
Palantir Technologies stock has beaten the broader market handsomely so far this year. The company's rapidly improving margins and growing customer base should help it sustain its growth. Though the stock is expensive, investors can still consider buying it given Palantir's massive opportunity. 10 stocks we like better than Palantir Technologies › Cathie Wood -- the founder and CEO of investment management firm Ark Invest -- has made her name by betting big on disruptive and innovative companies. This strategy reaped rich rewards in 2023 and 2024 as her flagship exchange-traded fund, the ARK Innovation ETF, clocked an impressive gain of 82% to beat the S&P 500 index's 53% return by a nice margin. However, 2025 has been a tough year for the ETF due to broad market weakness. The fund is up just 1% year to date, as of this writing, after making a solid recovery in the past month and a half. One of the reasons why the ARK Innovation ETF has bounced back since the beginning of April is because of a strong rally for shares of Palantir Technologies (NASDAQ: PLTR). The software platforms specialist is up over 40% since April 8, driven by the robust demand for the company's Artificial Intelligence Platform (AIP). Palantir is the sixth-largest holding in the ARK Innovation ETF, and it recently delivered a solid set of results that establish its credentials as a top player in the fast-growing AI software market. Does this mean investors should also make Palantir stock a core holding in their portfolios? Let's find out. The Nasdaq Composite index is down 2% so far in 2025. It entered bear market territory last month due to the turmoil stemming from President Trump's tariff announcements, which raised the risk of a global recession. Palantir also tumbled during this period, but its rebound has been swift. As a result, the stock is now trading at 557 times trailing earnings. Its forward price-to-earnings ratio of 220 points toward a big jump in its earnings this year, but it's still very expensive. While those triple-digit valuation multiples will scare off value-oriented investors, Wedbush analyst Dan Ives believes the software specialist has the potential to more than triple its share price and reach a trillion-dollar market cap in the next three years. That means growth-oriented investors can still consider buying this stock, especially considering the rapidly growing demand for Palantir's artificial intelligence (AI) solutions. Recent results support a bullish outlook as well. Palantir is landing a significant number of contracts every quarter, which is bolstering its long-term revenue pipeline. For instance, Palantir's revenue shot up 39% year over year in the first quarter, a marked acceleration from the 21% growth it recorded in the same quarter last year. The company's bottom-line also more than doubled year over year to $218 million. Looking ahead, the company has been signing larger deals due to the growing interest in its AIP, which allows customers to integrate generative AI into their business processes to improve productivity and efficiency. For instance, the number of $1 million-plus deals signed in Q1 increased 60% year over year to 139. Meanwhile, the number of deals valued at $10 million or more doubled to 31 for the quarter. The significant jump in Palantir's deal sizes can be attributed to a combination of rapid growth in Palantir's customer base and an increase in spending from its existing customers. The company's overall customer count shot up 39%, and its net dollar retention rate increased 13 percentage points from the year-ago period to 124% last quarter. This metric is calculated by dividing the trailing 12-month (TTM) revenue from Palantir's customers at the end of a quarter by the TTM revenue from those same customers in the year-ago period. A net dollar retention rate of more than 100% indicates that Palantir's existing customers raised their spending on its offerings. That's not surprising as Palantir points out that its existing customers have been expanding their current deals following the productivity gains they're witnessing after the deployment of AIP. The AI software platforms market that Palantir serves is expected to grow more than fivefold between 2023 and 2028, generating annual revenue of $153 billion after five years. Palantir's top-line growth in the previous quarter indicates that it is growing almost in line with the end market. However, don't be surprised to see it grow at a faster pace than the AI software platforms space in the future because it's one of the top vendors of AI software platforms as per third-party estimates. The terrific growth in Palantir's customer base and its ability to win a bigger share of existing customers' wallets are giving its margins a big boost. Its adjusted operating margin shot up by eight percentage points year over year to 44% in Q1, indicating that there is more room for growth on this front. Not surprisingly, analysts increased their earnings outlook for the company following the Q1 earnings release: However, Palantir's favorable unit economics could allow it to beat analysts' expectations. That would help the company justify its expensive valuation and deliver more gains. That's why investors who are willing to look beyond its price tag in the near term should consider adding this leading AI stock to their portfolios. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Is This Top Holding at Cathie Wood's Ark Invest Worth Adding to Your Portfolio? was originally published by The Motley Fool
